Sales tax when ordering online?

[RaistlinZ]

Quick question.. since I live in California if I buy something online from a vendor out of state do I pay sales tax on my order?

 

[screw3d]

Nope!

 

[imported_Mike]

Originally posted by: screw3d
Nope!

you sure?

 

[screw3d]

Originally posted by: CheapArse

Originally posted by: screw3d
Nope!

you sure?

Umm

If the vendor does not have physical presence in CA?

 

[95SS]

I believe you have to pay a use tax, equal to state sales tax, but paid directly by the consumer to the state. Usually you pay this when filing your state tax return.

 

[rmrf]

no, unless they actually have a location in your state. best buy got smacked with this because they were not charging sales tax on their online orders. they have a physical presence in every or almost every state, so you have to pay sales tax with them. not sure what 95SS is talking about, maybe something to do with reselling?

 

[SynthDude2001]

Originally posted by: rmrf
no, unless they actually have a location in your state. best buy got smacked with this because they were not charging sales tax on their online orders. they have a physical presence in every or almost every state, so you have to pay sales tax with them. not sure what 95SS is talking about, maybe something to do with reselling?

From what I understand, the state wants you to pay a "use tax" equal to the sales tax amount (when you're filing your state return), on all out-of-state purchases, but it's up to you to report it...or something like that. I personally live in a state without an income tax, so I can't say for sure.

 

[95SS]

Originally posted by: rmrf
no, unless they actually have a location in your state. best buy got smacked with this because they were not charging sales tax on their online orders. they have a physical presence in every or almost every state, so you have to pay sales tax with them. not sure what 95SS is talking about, maybe something to do with reselling?

Do I owe use tax?

You generally owe California use tax when you use, consume, give away or store tangible personal property (i.e., products you can see, weigh, feel or touch, such as clothing, books, computers, DVDs or CDs) in California that you purchased from an out-of-state vendor. If the out-of-state vendor does not collect the California tax on your purchase, you must pay the tax to the Board.

From here

Just because you buy it out of state, doesn't mean you don't have to pay taxes on it. I think this will become a big issue soon, there's a lot of money that states are missing out on.

Note - I am not a CPA nor a tax professional, this is my personal opinion, nothing more.

 

[Eli]

n00b.

 

[rmrf]

that's interesting. the states must not be pushing too hard for that, because my tax guy has never asked me to put my "use tax" down. is this a CA only thing, or are all states affected by it?

 

[quakefiend420]

Originally posted by: 95SS

Originally posted by: rmrf
no, unless they actually have a location in your state. best buy got smacked with this because they were not charging sales tax on their online orders. they have a physical presence in every or almost every state, so you have to pay sales tax with them. not sure what 95SS is talking about, maybe something to do with reselling?

Do I owe use tax?

You generally owe California use tax when you use, consume, give away or store tangible personal property (i.e., products you can see, weigh, feel or touch, such as clothing, books, computers, DVDs or CDs) in California that you purchased from an out-of-state vendor. If the out-of-state vendor does not collect the California tax on your purchase, you must pay the tax to the Board.

From here

Just because you buy it out of state, doesn't mean you don't have to pay taxes on it. I think this will become a big issue soon, there's a lot of money that states are missing out on.

Note - I am not a CPA nor a tax professional, this is my personal opinion, nothing more.

more money to the gvt...

 

[95SS]

This was posted a few days ago, so yes, it's more than California. I'd at least inquire about it with a tax professional that is familiar with your state tax laws. Also see the stickied tax post at the top of Off Topic, the members that run that thread are tax professionals, they could give you better info than I could.

 

[dullard]

Originally posted by: rmrf
that's interesting. the states must not be pushing too hard for that, because my tax guy has never asked me to put my "use tax" down. is this a CA only thing, or are all states affected by it?

95SS is correct. I haven't seen a state yet that doesn't have some form of "use tax" where you yourself submit your sales tax that wasn't collected during the year (assuming your state has sales tax). Of course, since I haven't looked up every state, there could be some without that law.

 

[RossMAN]

Oregon 0% sales tax.

That's why people LOVED 800.com since they were based here in Portland, Oregon

 

[Anonemous]

NH has 0% tax as well. Or somewhere in the north east. I wonder how they're making state revenue though? higher property taxes/income?